Burberry: first-half results up; transition period opens.

(CercleFinance.com) - British luxury group Burberry beat forecasts, with a 4% rise in first-half revenue and double-digit underlying profit growth.

The company said revenue rose to 1.26 billion pounds in the six months to end-September, compared to 1.15 billion pounds in the same period a year ago.

Simultaneously, adjusted operating profit jumped to 185 million pounds, up 17% at constant exchange rates, from the 144 million pounds reported for the first half 2017.

The group also announced a "strategy update," nine days after saying that chief creative officer Christopher Bailey would leave the company at the end of 2018.

"Now is the right time for Burberry to implement the next phase of its transformation," the company said, saying that it aims to establish a firm position in luxury and deliver sustainable long-term value.

"There will be a period of transition as we implement our strategy," said Marco Gobbetti, chief executive officer.

Burberry shares are currently down 9.5% at 1,797 pence, by far the sharpest faller on the UK's benchmark FTSE 100 index.